Tax related identity theft has become an increasingly large problem for the IRS and state tax agencies. Generally, these scams involve someone using a stolen identity to file a fraudulent tax return claiming someone else’s tax refund or altering the tax information to create a fraudulent refund that the scammer claims as their own.
To combat this rising problem, the IRS and state tax agencies have created new programs to review income tax returns in an effort to prevent the payment of fraudulent refunds.
The State of CA tax agency, the Franchise Tax Board (FTB), employs security measures to protect California taxpayers and the State from tax related identity theft. As a preventative measure, certain tax returns are selected for review and the FTB requests additional information to confirm the identity of the person that filed the tax return. Taxpayers must furnish the requested documentation in order for their tax return to be processed.
This is not an audit, but rather a preventative measure to mitigate the risk of identity theft for taxpayers.
Planned Solutions is happy to help provide the necessary documentation or respond to the FTB Notice if we prepared your tax return for the tax year in question.